In October 2025, the State Bank of India (SBI) and Bank of Baroda (BoB), supported by other Public Sector Banks(PSBs), were designated as the lead institutions to establish the to establish ‘the Indian Digital Payment Intelligence Corporation (IDPIC), a Section 8 (non-profit) company that will use Artificial Intelligence (AI) to detect and prevent digital payment frauds in real time.
- The framework and articles of association have received approval from the Reserve Bank of India (RBI).
Exam Hints:
- What? Establishment of Indian Digital Payment Intelligence Corporation (IDPIC)
- Objective: Detect and prevent digital payment fraud in real time using AI
- Lead Banks: SBI and BoB
- Type of Entity: Section 8 non-profit company
- Authorized Capital: Rs 500 crore
- Paid-up Capital: Rs 200 crore
- Seed Investment: Rs 10 crore each by SBI and BoB
- Approved by: RBI
- Participating Institutions: All 12 PSBs.
About Indian Digital Payment Intelligence Corporation (IDPIC):
Objective: To detect and prevent digital payment fraud in real time, strengthen risk management frameworks, and establish a shared intelligence network for swift inter-bank response to cyber threats.
Background: The establishment of IDPIC follows the A.P. Hota Committee’s recommendation to create a Digital Payments Intelligence Platform, addressing the surge in digital frauds and enhancing vigilance as bank frauds rose to Rs. 36,014 crore in Financial Year 2024-25 (FY25) from Rs. 12,230 crore in FY24.
Capital: The entity will have an authorized capital of Rs. 500 crore and paid-up capital of Rs. 200 crore.
Funding: SBI and BoB will each provide Rs. 10 crore as seed funding, while other PSBs will participate as equity investors in subsequent phases.
Structure and Governance:
- Board Composition: Senior executives from SBI and BoB to serve as directors.
- Stakeholders: All 12 PSBs to participate as equity partners.
- Registration: The Ministry of Finance (MoF) has submitted the name to the Ministry of Corporate Affairs (MoCA) for final registration.
Functioning and Technology:
- AI & ML Integration: IDPIC will leverage AI and Machine Learning (ML) algorithms to analyze transaction patterns and detect suspicious activity.
- Alerts System: Banks will receive real-time alerts on potentially fraudulent activities, helping prevent financial loss before transaction completion.
Other Initiatives for Combating Cyber and Financial Frauds:
MuleHunter.AI: An AI/ML-driven tool developed by Reserve Bank Innovation Hub (RBIH), subsidiary of RBI, in 2024, for detecting mule accounts, adopted by banks such as Canara Bank, Punjab National Bank (PNB) and Bank of India (BoI), BoB, and AU Small Finance Bank(AU SFB).
- “Mule accounts” are bank accounts misused by scammers to transfer illegal money, often by fooling account holders.
Indian Cyber Crime Coordination Centre (I4C): The national nodal agency launched under the Ministry of Home Affairs (MHA) in 2018 for combating cybercrime.
About State Bank of India (SBI):
The State Bank of India (SBI) originated from the Bank of Calcutta, founded in 1806. In 1921, the Bank of Calcutta, Bank of Bombay (1840), and Bank of Madras (1843) merged to form the Imperial Bank of India, which was later nationalized and renamed the SBI on 1st July 1955.
Chairman – Challa Sreenivasulu Setty
Headquarters – Mumbai, Maharashtra
